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CARFAX History

By Lisa Wade McCormick
ConsumerAffairs.com

October 10, 2006

Carfax • Public Citizen Objects to Carfax Settlement • CARFAX: Not Always All the Facts • How Can Used Car Buyers Protect Themselves? • CARFAX Settles Class Action Lawsuits • How To Contact CARFAX • CARFAX History --- Consumer Complaints • "Unlimited" Service • Inaccurate Reports • Refund Policy • Advertising Claims • Sellers' Complaints

A computer expert from Columbia, Missouri, founded CARFAX in 1984.

At the time, odometer fraud was a rampant problem. But Ewin Barnett III had an idea about how to fight this crime that targeted unsuspecting used car buyers.

"Barnett was a computer guy who thought you could combat odometer fraud by gathering title records from different states and looking for discrepancies," says Kansas City consumer attorney Bernard Brown, who specializes in car fraud and worked with Barnett.

Barnett's idea quickly caught on.

Consider:

• 1986 - CARFAX compiles 10,000 vehicle records and has 14 car dealers as customers;
• 1991 - Barnett receives a U. S. Patent (No. 4989144) for a computer "method and system for identifying and displaying discrepancies in vehicle titles. Barnett said his invention was designed to provide "a unique system and method for handling a database of vehicle title transactions…indexed by VIN…to rapidly discover or verify prior salvage titles…odometer tampering and reveal title washing."
• 1993 - CARFAX receives title information from nearly all 50 states. Blackburn Marketing Service buys the company and moves the headquarters to Virginia;
• 1994 - CARFAX gathers 100 million vehicle history records;
• 1996 - CARFAX launches CARFAX.com to give consumers access to vehicle history records;
• 1999 - CARFAX becomes a wholly owned subsidiary of R. L. Polk & Co.;
• 2004 - CARFAX offers a buyback guarantee.

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